European stocks end up 0.2 per cent

European shares closed higher yesterday in a choppy session as gains in the banking and mining sectors overshadowed losses in oils and utilities.

The pan-European FTSEurofirst 300 index of top shares closed up 0.2 per cent at 745.33 points, having climbed as high as 747.83 points and fallen to 737 earlier in the session.

Across Europe, the FTSE 100 index was up 0.6 per cent, Germany's DAX was 0.9 per cent higher and France's CAC 40 was down 0.05 per cent.

"Investors are trying to strike a balance between a resurgence in optimism and consolidation, and until one outweighs the other, the markets will continue to seesaw sideways," said Joshua Raymond, market strategist at City Index.

The banking sector was higher, although stocks within the sector were mixed. HSBC, Barclays, Lloyds Banking Group and BNP Paribas were up 1.9-13.5 per cent, while UBS, Standard Chartered and Credit Suisse were down 0.4-3.8 per cent.

Miners gained as copper rose 3.9 per cent. Anglo American, Antofagasta, BHP Billiton, Eurasian Natural Resources Corporation, Rio Tinto and Xstrata were up 0.7-16.9 per cent.

Volkswagen was 7.6 per cent higher after a 10 billion euro refinancing deal for parent company Porsche sparked speculation the automaker will increase its stake in Europe's largest carmaker. Energy stocks were weaker. BG Group, Galp Energia, Royal Dutch Shell and Petroplus were down 1-2.3 per cent.

Utilities were in the doldrums. German power utility E.ON lost one per cent after German daily Handelsblatt, citing company sources, reported that the group and smaller domestic rival RWE have placed joint bids for three British nuclear sites.

Fashion chain Hennes & Mauritz AB slipped 3.5 per cent after the group posted a surprise 13 per cent fall in first-quarter pretax profit as unfavourable currency swings took the shine off robust sales.